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Price Action Document

  • #1
  • First Post: Apr 19, 2007 10:15am Apr 19, 2007 10:15am
Hello!
I have been doing a lot of reading on the forex factory just like everyone else here does. I have learned a lot, but one thing i have picked up on is this. Systems that utilize indicators usually hurt my trading, rather then helping it. One thing always remained constant when i looked back at some potential trades, or losing ones that may have made it more profitable or prevented me from hopping in: PRICE ACTION!

I decided it would be a good idea that we all put our minds together and create a document that every trader should know. Something that young traders can post next to their computers to give them some sort of reference point on what to look for with formations and what to expect them to do. I have created a few things to start that mostly originated from James16 aka' Forex LEGEND! Lets create something that may even become a sticky here!!

Here is what i have!

http://www.computermedicsonline.com/PA.doc

I shall keep this one up to date too. So there should be no need to sift through this thread to find the newest one!
  • #2
  • Apr 19, 2007 10:38am Apr 19, 2007 10:38am
Here is a good resource that I found in my favourites folder. I remember that there was a lot of good information contained.

http://stockcharts.com/school/doku.p...chart_analysis
  • #3
  • Apr 19, 2007 10:56am Apr 19, 2007 10:56am
How about the inside day breakout?
  • #4
  • Apr 19, 2007 10:59am Apr 19, 2007 10:59am
Oh. I hadnt perused the stockcharts link, I see its referred to as a Harami there.
  • #5
  • Apr 19, 2007 11:38am Apr 19, 2007 11:38am
Ted, I took a quick look at that link. It does have a lot of useful info. I'm going to go through it more in depth. I am not very familiar with inside day breakout. If i could take a guess, i would say it is an inside bar on a daily chart, which is a trend continuation pattern? If i'm wrong, feel free to put me in my place .

Can someone get me some rules on the I4bars and maybe a chart with an example? id like to through that in there.
  • #6
  • Edited 1:10pm Apr 19, 2007 11:54am | Edited 1:10pm
Excellent summary, but I think you should cover the IB breakout.

 Does anyone if James16 is up to something new? I would like to hop on.

 Ahmed
  • #7
  • Apr 22, 2007 3:01am Apr 22, 2007 3:01am
Hi Ahmed


The james16 Private Forum is full of great information for price action trading. It's always being updated with new posts and has really helped me. Hop on :-)

Quoting fayeaa0d
Excellent summary, but I think you should cover the IB breakout.

 Does anyone if James16 is up to something new? I would like to hop on.

 Ahmed
  • #8
  • Jul 19, 2007 3:59pm Jul 19, 2007 3:59pm
  •  Trader#0000
  • | Status: Unregistered Trader
Quoting Liquid11
Hello!
I have been doing a lot of reading on the forex factory just like everyone else here does. I have learned a lot, but one thing i have picked up on is this. Systems that utilize indicators usually hurt my trading, rather then helping it. One thing always remained constant when i looked back at some potential trades, or losing ones that may have made it more profitable or prevented me from hopping in: PRICE ACTION!

I decided it would be a good idea that we all put our minds together and create a document that every trader should know. Something that young traders can post next to their computers to give them some sort of reference point on what to look for with formations and what to expect them to do. I have created a few things to start that mostly originated from James16 aka' Forex LEGEND! Lets create something that may even become a sticky here!!

Here is what i have!

http://www.computermedicsonline.com/PA.doc

I shall keep this one up to date too. So there should be no need to sift through this thread to find the newest one!
Hi Liquid,

Thanks for putting together the document. I was wondering if you did add anything else to the original document that you posted....may be other formations. If yes, would mind sharing it. It has been very helpful.

Thanks,
Ricardo.
  • #9
  • Jul 19, 2007 5:32pm Jul 19, 2007 5:32pm
I tend to disagree regarding 'new' information on the private forum...
Updates are far between but I suppose all of the essential material is already there so adding to something which is pretty much complete may be difficult.
  • #10
  • Jul 19, 2007 11:47pm Jul 19, 2007 11:47pm
great idea liquid

everyone remember a thing or setup in price action just post it here
and it will be added to the document

you don't need to search in your papers and notes about anything

just while you trade, and remember a trick or idea, post it here with examples

In my head now alot of setups and topics as

IB, WRB, NRB, NOL, 3DE, MSL, MSH...

sign of strength and it's entry techniques, ...
hook
time rule
consolidation areas ...
reversal bars

alot of things in my head that I use every day, also more I cant remember now

every time I remember a setup I will post it here and if I have a notes or link about it I will include it too

Great thread Liquid
  • #11
  • Edited 8:41am Jul 20, 2007 1:07am | Edited 8:41am
I will begin with a something I remember now

WRB:Wide Range Bar
>it's a bar with visible wide range, but identifying WRB is subjective, somebody say it's a bar that has a range wider than the previous 5 bars, may another says something else so it'll come with experience and the number of charts you see

here is some points

  1. WRB can be bullish/bearish
  2. WRB confirms support/resistance that means:

> if bullish WRB comes after downtrend then it confirms support area
> if bearish WRB comes after uptrend then it confirms resistance area

  1. a formation like triangles/rectangle/wedges usually breached with WRB
  2. if we divide the range of WRB into two parts 50% of the range act as support/resistance (you can do this by drawing fib ratios on the bar and look for 50%)
  3. sometimes WRB followed by narrow range bars so entry/TP must be controlled by:

>if WRB is bullish then entry in the lower 50% of it's range

>if WRB is bearish then entry in the higher 50% of it's range

-Taking profit also depend on the term of the trade

>if it is short term trade you can take half of the position on 50% added to the high of the WRB and the other half at 100% added to the high of the WRB
>if it long term you may look for more profit by looking at other fib ratio and the previous trend and other formations



this is what I remember now
I will post some charts in a following post
and if anything else comes about WRB I will add
  • #12
  • Jul 20, 2007 1:37am Jul 20, 2007 1:37am
here is some examples if the charts appears small I provide a links too Ex1, Ex2, Ex3

Ex 1
Attached Image (click to enlarge)
Click to Enlarge Name: wrb1.jpg Size: 34 KB


Ex 2
Attached Image (click to enlarge)
Click to Enlarge Name: wrb2.jpg Size: 29 KB


Ex3
Attached Image (click to enlarge)
Click to Enlarge Name: wrb3.jpg Size: 27 KB
  • #13
  • Nov 28, 2007 2:17pm Nov 28, 2007 2:17pm
Quoting Liquid11
Hello!
I have been doing a lot of reading on the forex factory just like everyone else here does. I have learned a lot, but one thing i have picked up on is this. Systems that utilize indicators usually hurt my trading, rather then helping it. One thing always remained constant when i looked back at some potential trades, or losing ones that may have made it more profitable or prevented me from hopping in: PRICE ACTION!

I decided it would be a good idea that we all put our minds together and create a document that every trader should know. Something that young traders can post next to their computers to give them some sort of reference point on what to look for with formations and what to expect them to do. I have created a few things to start that mostly originated from James16 aka' Forex LEGEND! Lets create something that may even become a sticky here!!

Here is what i have!

http://www.computermedicsonline.com/PA.doc

I shall keep this one up to date too. So there should be no need to sift through this thread to find the newest one!
Hi,

Just found this thread and was interested in the PA doc but the link no longer works? Does anybody have this they could send me?

Thanks
*** Shoot for the moon. Even if you miss, you'll land among the stars. ***
  • #14
  • Nov 28, 2007 6:20pm Nov 28, 2007 6:20pm
  •  TrevA
  • | Joined Oct 2007 | Status: my brain has a mind of its own | 166 Posts
Quoting Liquid11
Hello!
One thing always remained constant when i looked back at some potential trades, or losing ones that may have made it more profitable or prevented me from hopping in: PRICE ACTION!

I decided it would be a good idea that we all put our minds together and create a document that every trader should know.

Here is what i have!

http://www.computermedicsonline.com/PA.doc

I shall keep this one up to date too. So there should be no need to sift through this thread to find the newest one!
Liquid11

I really think this is a good initiative and would be happy to help in any way I can provided that the document remains free and open to the public.

Price action is so important for profitable trading so a reference document with a list of all price action patterns and possibilities would be a fantastic resource for the new and experience alike.

I know another forum exists that discusses price action in detail but they charge a participation fee. Why should there be a price on knowledge?

How do we proceed?

TrevA
  • #15
  • Last Post: Jan 11, 2008 5:31am Jan 11, 2008 5:31am
Quoting Liquid11
Hello!
I have been doing a lot of reading on the forex factory just like everyone else here does. I have learned a lot, but one thing i have picked up on is this. Systems that utilize indicators usually hurt my trading, rather then helping it. One thing always remained constant when i looked back at some potential trades, or losing ones that may have made it more profitable or prevented me from hopping in: PRICE ACTION!

I decided it would be a good idea that we all put our minds together and create a document that every trader should know. Something that young traders can post next to their computers to give them some sort of reference point on what to look for with formations and what to expect them to do. I have created a few things to start that mostly originated from James16 aka' Forex LEGEND! Lets create something that may even become a sticky here!!

Here is what i have!

http://www.computermedicsonline.com/PA.doc

I shall keep this one up to date too. So there should be no need to sift through this thread to find the newest one!
Hello sir,
I am unable to access the webpage where you have uploaded the document. Is it still available at the above quoted link? If it not available, can please reupload the updated version?
Thanks in advance and regards
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